W-Scope Chungju Plant (A393890) Q2 2024 earnings summary

Executive summary

• Revenue for 2Q24 reached KRW 116.6 billion, up 40.6 billion year-over-year but down 5.8 billion sequentially from 1Q24.

• Net profit for 2Q24 was KRW 3.4 billion, a decrease of 9.7 billion year-over-year but a slight increase of 0.1 billion sequentially.

• Gross margin improved to 5.7% in 2Q24 from 4.0% in 1Q24, but remains significantly below the 25.7% margin in 2Q23.

Financial highlights

• Operating profit for 2Q24 was KRW 1.8 billion (1.5% margin), up from KRW 0.6 billion in 1Q24 but down from KRW 16.7 billion in 2Q23.

• EBITDA for 2Q24 was KRW 17.0 billion (14.6% margin), up from KRW 15.1 billion in 1Q24 but down from KRW 28.0 billion in 2Q23.

• CAPEX in 2Q24 was KRW 75.4 billion, a significant decrease from KRW 147.4 billion in 1Q24 and KRW 144.2 billion in 2Q23.

Outlook and guidance

• Prismatic battery shipments expected to remain flexible to support main customer demand in 2H24.

• 2170 battery volumes projected to stay steady from 1H24 levels.

• Commercial testing and order discussions ongoing for 46 battery type and new customers.

• Recovery in non-EV power tool demand likely postponed; logistics costs remain pressured by geopolitical risks.